Korean Air Reports Record Q2 Revenue of KRW 5.0199 Trillion
Korean Air posted standalone revenue of KRW 5.0199 trillion in the second quarter of 2026, marking its highest-ever second-quarter performance. According to the airline, revenue rose KRW 1.034 trillion, or 25.9%, from a year earlier.
Growth in both the passenger and cargo businesses drove the increase in overall revenue, but operating profit fell to KRW 261.8 billion as higher oil prices and the won-dollar exchange rate weighed on earnings. That was a 34.4% decline from the same period last year.
Passenger and Cargo Businesses Drive Revenue Growth
Passenger Revenue Reaches KRW 2.8479 Trillion
Passenger revenue totaled KRW 2.8479 trillion in the second quarter, up KRW 451.4 billion from a year earlier. Although demand originating in Korea softened somewhat because of the burden of fuel surcharges, stronger transit demand from the Middle East and rising inbound travel by foreign visitors helped lift overall revenue.
Korean Air increased capacity on major routes to the United States and Japan, where demand has grown. Expectations are that travel demand from Korea could recover ahead of the summer peak season if the burden of fuel surcharges eases.
Cargo Revenue Jumps to KRW 1.5419 Trillion
Cargo revenue rose 46.1% year on year to KRW 1.5419 trillion. Korean Air said increased global investment in artificial intelligence and strong K-beauty exports helped drive higher semiconductor and other air cargo demand.
The company’s focus on attracting high-value cargo and operating non-scheduled flights on routes with strong demand also contributed to the improvement. Cargo rates rose to elevated levels after the COVID-19 pandemic, supporting the increase in revenue.
Operating Profit Falls 34.4% on Higher Oil Prices
Korean Air’s operating profit came to KRW 261.8 billion in the second quarter, down KRW 137.1 billion from KRW 398.9 billion a year earlier. The airline said the main factors were a sharp increase in fuel costs driven by higher global oil prices and exchange-rate volatility.
Fuel costs totaled KRW 1.9991 trillion in the second quarter, up 110.9% from a year earlier. Total operating expenses also increased 32.6% to KRW 4.7581 trillion, preventing the rise in revenue from translating fully into improved profitability.
The airline nevertheless remained profitable at the operating level. Net income swung to a loss of KRW 97.3 billion, however, affected by factors including foreign-currency translation losses.
First-Half Operating Profit Reaches KRW 778.7 Billion
Cumulative revenue for the first half rose 20% year on year to KRW 9.535 trillion. Operating profit increased by KRW 28.8 billion, or approximately 3.8%, to KRW 778.7 billion.
Although profitability slowed in the second quarter, operating profit continued to grow for the first half as a whole, including the first-quarter results. The figures show that the recovery in passenger demand and strong cargo performance partly offset the impact of high oil prices.
Oil Prices and Demand Recovery to Shape Second-Half Performance
For its passenger business in the third quarter, Korean Air expects demand to rebound as fuel surcharges decline and the summer peak season begins. The airline believes profitability in the passenger business could improve if demand from Korea recovers while demand from overseas markets remains firm.
In its cargo business, the company plans to actively pursue high-value shipments tied to artificial intelligence, semiconductors and other industries. It also intends to manage revenue and profitability by flexibly adjusting capacity on routes in response to changes in the external environment.
Korean Air’s second-quarter results are significant because quarterly revenue exceeded KRW 5 trillion for the first time. But continued volatility in oil prices and exchange rates could increase cost pressures, making capacity adjustments and fuel-cost management key priorities for the second half of the year.
Frequently Asked Questions (FAQ)
Q. How much revenue did Korean Air record in the second quarter of 2026?
A. Korean Air’s standalone revenue for the second quarter of 2026 was KRW 5.0199 trillion, the highest second-quarter revenue in the company’s history.
Q. How much did Korean Air’s operating profit decline in the second quarter?
A. Operating profit fell to KRW 261.8 billion, down KRW 137.1 billion, or 34.4%, from a year earlier.
Q. Did Korean Air post a loss in the second quarter?
A. The airline remained profitable at the operating level, but reported a net loss of KRW 97.3 billion. Foreign-currency translation losses and other factors affected net income.
Q. How did higher oil prices affect Korean Air’s results?
A. Fuel costs rose 110.9% from a year earlier, driving a sharp increase in operating expenses and contributing to the decline in operating profit.
Q. What was Korean Air’s operating profit in the first half of 2026?
A. Operating profit for the first half totaled KRW 778.7 billion, up KRW 28.8 billion from the same period last year.
Q. What is Korean Air’s outlook for the second half of the year?
A. Korean Air expects passenger demand to recover as the summer peak season takes effect and fuel surcharges decline. In cargo, it plans to focus on attracting shipments tied to artificial intelligence and other high-value industries.
